Keeping Corruption Out of Global Free Enterprise: The Case Against Tariffs

Free enterprise, the backbone of the global economy, thrives on fair competition, innovation, and trust.

It is the system that has lifted millions out of poverty, fostered international cooperation, and driven the greatest advancements in human history.

At its core, free enterprise functions best when left free—unencumbered by unnecessary political interference or protectionist policies. Yet, when leaders impose tariffs or restrictions, they undermine the very principles that make the system work.

The administration of former U.S. President Donald Trump provides a cautionary tale of how tariffs and protectionist policies can disrupt global free trade, introducing inefficiencies and creating a ripple effect of economic harm. As Trump takes office again, we expect to see more of the same.

To protect and strengthen global free enterprise, it is crucial to understand why free trade is essential and how tariffs can corrupt its natural flow.

Free Enterprise and Trade

Free trade is the lifeblood of global free enterprise. It allows businesses to operate beyond borders, leveraging comparative advantages to create value for all participants.

Nations can specialize in what they do best, consumers gain access to better and more affordable goods, and economies grow through the mutual exchange of resources, innovation, and ideas.

The benefits of free trade include:

Lower Costs: Competition drives prices down, benefiting consumers worldwide.

Increased Innovation: Exposure to global markets pushes companies to innovate and stay competitive.

Job Creation: While critics often argue that free trade moves jobs offshore, it also creates new opportunities in industries like technology, logistics, and global services.

Stronger Relationships: Trade fosters international cooperation and stability by building economic interdependence.

Free trade is the foundation of global prosperity, ensuring that resources are allocated efficiently and that businesses can thrive in a competitive, interconnected marketplace.

Tariffs: A Form of Economic Manipulation

Tariffs, often sold as tools to “protect” domestic industries, are in reality a form of economic manipulation. They interfere with the natural flow of trade, distort market dynamics, and prioritize political agendas over economic principles. Under the Trump administration, tariffs became a hallmark policy, with the U.S. imposing duties on goods from Canada, China, and other trading partners.

For example, in 2018, the Trump administration levied tariffs on Canadian aluminum and steel, citing national security concerns. These measures disrupted one of the world’s most integrated trading relationships, straining industries on both sides of the border. The tariffs increased costs for American manufacturers who relied on Canadian materials, leading to higher prices for consumers and retaliatory tariffs from Canada.

The result? A lose-lose situation that hurt businesses, workers, and consumers alike.

How Tariffs Undermine Free Enterprise

Distorting Competition: Tariffs create artificial advantages for domestic industries, shielding them from healthy competition and discouraging innovation.

Raising Costs: Higher tariffs lead to higher production costs, which are inevitably passed on to consumers.

Retaliation and Trade Wars: Tariffs provoke retaliatory measures, escalating tensions and reducing global trade volumes.

Eroding Trust: Protectionist policies damage relationships between trading partners, creating uncertainty and instability in global markets.

Stifling Global Growth: By restricting the flow of goods and services, tariffs slow economic growth and limit opportunities for businesses and workers.

In essence, tariffs are a short-term political tool that undermines the long-term benefits of free enterprise.

The Trump Example: A Lesson in Interference

The Trump administration’s approach to trade was a stark departure from the principles of free enterprise. Tariffs were used as leverage in trade negotiations, but their impact often harmed the very industries they were meant to protect.

For instance, American farmers became collateral damage in the trade war with China, as retaliatory tariffs reduced access to key export markets. Meanwhile, American consumers faced higher prices on everyday goods, from washing machines to electronics.

The broader lesson is clear: when leaders interfere in free enterprise for political gain, they corrupt the system, introducing inefficiencies and uncertainties that hurt everyone. Politicians should serve the people, not manipulate markets.

How to Protect Global Free Enterprise

To keep corruption out of global free enterprise, we must:

Champion Free Trade Agreements that allow for the natural ebb and flow of market demand.

Resist Protectionism: Leaders should focus on policies that enhance competitiveness rather than shielding industries from competition.

Foster Global Cooperation: It’s time for a GLOBAL TRADE agreement between all countries. One that we can all adhere to. I should be really simple, something like…”May the best wo/man win.”

Promote Transparency: Governments and businesses must operate with transparency, ensuring that trade policies are based on sound economic principles rather than political agendas.

Educate Stakeholders: Consumers, workers, and business leaders must understand the long-term benefits of free trade and advocate for policies that support it.

The Path Forward

Free enterprise, when left to operate without interference, is an incorruptible system. It aligns with human ambition, rewards innovation, and creates value for everyone involved.

Globalization and free trade are extensions of this system, enabling businesses to reach their full potential and consumers to access the best the world has to offer.

Leaders must recognize that their role is to facilitate, not manipulate, the global marketplace. Policies like tariffs, while politically expedient, undermine the integrity of free enterprise and harm the very people they claim to protect.

The world needs more trust in the power of markets and less interference from politics. Business wants to do business. We should let it.